The transaction, finalized on December 23, 2024, values Olam Agri Holdings at $3.5 billion. Olam Group will maintain a controlling interest of 64.57% in the agricultural division. This agreement was initially announced in March 2022.
As part of the arrangement, Olam Agri and the Saudi Agriculture and Livestock Investment Company (SALIC) have formed a Strategic Supply & Cooperation Agreement, designed to enhance Olam’s footprint in Middle Eastern markets.
“This agreement underscores Olam Agri’s expertise in food security, which is becoming a significant trend in our industry,” stated Sunny Verghese, Co-Founder and CEO of Olam Group. He emphasized that executing a deal of this scale amidst current macroeconomic challenges highlights the resilience of Olam Agri’s business model.
Sulaiman AlRumaih, CEO of SALIC Group, remarked that the collaboration aligns with Saudi Arabia’s Vision 2030 economic reform initiative. “This strategic alliance with Olam, a leader in grains and diversified products, will play a vital role in fulfilling our Vision,” AlRumaih noted.
This transaction is part of Olam Group’s comprehensive reorganization strategy aimed at enhancing shareholder value and optimizing its capital framework. The Singapore-based firm anticipates that the partnership will generate synergies that will bolster Olam Agri’s expansion into new markets.
SALIC, which prioritizes food security investments, considers this deal essential for diversifying its international portfolio and ensuring sustainable sources for critical commodities in response to the increasing global food demand.